If you are a new homeowner, saving enough money for a down payment and closing costs is probably one of the biggest financial hurdles you have ever overcome. But you will soon learn that there are many financial challenges associated with homeownership. In some cases, there are expenses you could not anticipate or plan for, so it’s important to be flexible. Here are three tips to handle the expenses associated with homeownership.
1. Maintain a home repair fund.
You probably imagined that you would have to spend money to maintain your home over the years, but you might be surprised by just how much it costs. Studies show that a typical homeowner spends 1% to 4% of the home’s value for repairs and maintenance on an annual basis. This can amount to thousands of dollars, so it’s important to make sure you are prepared with a decent amount of cash reserve.
2. Remember that property taxes fluctuate.
Most buyers plan to pay taxes based on the amount the previous owner was paying, but property taxes typically increase over time. In some cases, an assessment can cause an instant increase in taxes. Make sure to include some cushion in your budget to account for changes.
3. Develop a new budget.
Homeownership is more complicated than a mortgage payment. You will also have to account for things like taxes, maintenance, repairs, lawn care, insurance and utilities. It may take a few months to determine how your new home’s utility costs will differ from the space you previously rented. Be sure to leave extra space in your budget for the new costs you aren’t accustomed to.
Whether you are interested in buying your first home or your tenth, the professionals at Boca Luxury Realty are here to help. Call us at 561-706-7144 to learn more.